What is RPM in AdSense and why is it so important for your campaigns – Marketing 4 Ecommerce – Your online marketing magazine for e-commerce

Google AdSense is a simple and free tool that allows portal publishers to monetize their website: if you have a website with traffic you can place advertising banners on it, thus earning profits every time someone clicks on those ads. In this article we will explain in detail what it consists of and why it is so important that you take into account the metric of revenue per thousand impressions (RPM).

Differences between Google AdSense and Google Ads

Google AdSense is related to Google ads (formerly Google AdWords): The ads that Google AdSense shows come from the Google Ads display network (Google AdSense is the other side of the Google Ads coin). So:

  • Google AdSense is the Google platform for publishers: If you have a website and want to earn passive income, all you have to do is sign up for this platform; So, ads will appear on your digital property (on your website) earning income from the clicks the ad receives.
  • Google ads it is for advertisers: This platform helps your products or services reach more people, thus achieving a greater number of sales. The display network It is a set of more than a million websites, apps, videos, blogs and other online destinations that include advertising (this network reaches 80% of internet users with advertising impacts). In this case, Google AdSense takes care of distribute advertising among the owners of said websites. To use Google AdSense it is necessary: ​​to be of legal age (18 years), to be the owner of a website and to comply with Google’s policies.

Advantages of Google AdSense

What advantages does Google AdSense offer besides the monetization of our website? Among its advantages, we can mention:

  • AdSense displays ads according to the categories you allow: These categories are the activities that the platform has defined (they do not always include the level of detail that allows, for example, to eliminate the competition). It does allow you to delete ads by URL and also the specific ads that are being included in our advertising spaces (that’s why it’s good to do frequent monitoring).
  • We can also block ads related to sensitive topics like sex, politics, sports betting…
  • There is a great variety of sizes and formats to customize them according to your website, and it is possible to choose the placement of the ad.
  • Google AdSense not only pays us for the clicks made on the ads that we show on our website, but also we also receive revenue from impressions of those ads (from a minimum of impressions); that is, it pays us by CPC and by CPM, hence the importance of monitoring and optimizing (maximizing) the RPM, which takes into account the CPC and gives us information about the total income per 1000 impressions.
  • Allows the elaboration of your own reports and integration web analytics tools, for example, Google Analytics.
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But it also has disadvantages:

  • Income will depend on the traffic of your website, and they may take a while to generate.
  • It affects the design and appearance of the website, sometimes being annoying for the user.
  • Despite excluding certain categories and URLs, sometimes an advertisement may not be related to the content, in terms of ideas and values ​​of the web.

what is RPM

RPM represents your estimated revenue per thousand page impressions. It is calculated through the following formula:

RPM = (Estimated Revenue/Number of Page Views) * 1,000

For example: if your ad has 50,000 visits and through it you have obtained a profit of €900, the RPM is: (900/50,000) *1000= €18.

To better understand what RPM is, it is necessary to define 3 concepts used by Google Analytics To measure the performance of a web page:

  • Session: When you access a website, a cookies which sends a signal to Google Analytics about the interactions you have made within a time frame, which is usually in ranges of 30 minutes.
  • Users: refers to the number of users accessing your website; When a new user comes in, Google assigns them a unique ID that stays in the browser for two years (if they use a different browser or device, a different ID is assigned to them).
  • Page views: this metric measures the number of page views by a user.

RPM is a good measure of the effectiveness of the strategy developed because it allows us to know more accurately if the income received is the cause of user satisfaction. Website owners use various RPM indicators:

  • The RPM per page: Measures revenue per 1,000 pages (page views).
  • The Ad Session RPM: Refers to revenue per thousand AdSense sessions.
  • The Print RPM: Revenue per thousand impressions (RPM) is the average revenue per thousand impressions.
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accustomed to talking about CPM, both online and in traditional media, perhaps for us the RPM of impressions is the clearest metric. However, tracking the session RPM is the most effective, as we will see more accurately what we can improve on our strategy.

Some Tips to increase RPM are:

  • Place the ads below the titleafter the call to action button (read more…) and in the middle of the page, insert a responsive ad.
  • Use Search Console to check that there are no errors.
  • Within AdSense we can allow and block certain ads: this is useful for block those that are not compatible with our website.
  • Rank the page organically (via ): More visits, more ad clicks, and more revenue.
  • You may modify the appearance of ads to integrate more with your website; this way the ad will receive more clicks.
  • Increase charging speed of your page so that the ads load faster.
  • Find out which ads are being bid on the most (those with the highest CPC) and make a related post with the theme of that ad.
  • Make estimates with the Google Ads Reach Planner to know the topics with the highest CPM.

Remember, however, that including Google AdSense on your website is a double-edged sword: take into account the generation of income Vs the bounce rate of the visitor to your website. For this reason, it’s highly recommended to link AdSense with Analytics and do ongoing tracking so we can quantify and compare metrics.

Presentation Hornbeam is a professor of SEM in

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